Our work in the sector spans assisting firms with regulatory advice on Foreign Direct Investment and consumer protection laws, tax implications of operating an e-commerce entity, IP disputes, privacy and data security concerns, technology transfers, electronic transactions, software licensing and payment system integration.
The proliferation of e-commerce is gradually transforming the way business is conducted in India. The sector has opened up opportunities for businesses to access global markets and is poised to witness exponential growth in the coming years. According to the India Brand Equity Foundation, India’s e-commerce market is projected to touch USD 111 billion by 2024 and USD 200 billion by 2026, making it the fastest-growing e-commerce market in the world. The sector also promises business several opportunities, as after China and the US, India had the third-largest online shopper base of 150 million in FY21 and this is expected to be 350 million by FY26.
The Government of India is also undertaking multiple initiatives to boost the e-commerce sector. It allowed 100% FDI under automatic route in B2B e-commerce and in the marketplace model of e-commerce. To democratise the e-commerce space and provide a level playing field to small sellers, the government has also launched the open network for digital commerce (ONDC), a first-of-its-kind initiative that looks to unbundle and decentralise e-commerce platforms and can possibly be a global pioneer in reinventing the e-commerce industry. Further, the upcoming Digital India Bill is likely to impact e-commerce platforms as it intends to clearly distinguish between various intermediaries such as e-commerce sites, social media platforms, etc.
In line with the dynamic regulatory landscape, businesses are required to structure their business model to effectively navigate the challenges of online sales and the evolving legislation pertaining to e-commerce. Challenges like cyber security incidents, including data breaches, also spark numerous regulatory and legal concerns in terms of regulatory reporting, personal data protection/privacy law, and contractual rights and obligations.
Our lawyers have developed a sound understanding of the business realities in this sector owing to their extensive experience in issues relating to commercial law, regulatory matters, structuring of foreign investments, review of policies from an Indian law perspective and analysis of legal regulations. Our work in the sector spans assisting firms with regulatory advice on Foreign Direct Investment (FDI) and consumer protection laws, tax implications of operating an e-commerce entity, IP disputes, privacy and data security concerns, technology transfers, electronic transactions, software licensing, payment system integration, and more. We have also assisted clients with regulatory investigations, where we have advised on strategy, communications and submissions to the regulator.
Some of our clients in this space include-